Changes

'''1. In your own words, try to give a better definition of "externalities" than provided by this Lecture.'''

'''1. In your own words, try to give a better definition of "externalities" than provided by this Lecture.'''

The positve or negitve effect of a transaction on persons

The positive or negative effect of a transaction on persons other than the buyer and seller.

 

'''2. Explain why marginal revenue must be zero when total revenue is maximized.'''

'''2. Explain why marginal revenue must be zero when total revenue is maximized.'''

'''3. What is your favorite question on the midterm exam that you answered incorrectly, and why is it your favorite?'''

'''3. What is your favorite question on the midterm exam that you answered incorrectly, and why is it your favorite?'''

'''4. Give an example of a positive externality, and an example of a negative externality. The example does not have to be limited to a business.'''

'''4. Give an example of a positive externality, and an example of a negative externality. The example does not have to be limited to a business.'''

'''5. Explain why private firms in the free market are unlikely to try to provide public goods.'''

'''5. Explain why private firms in the free market are unlikely to try to provide public goods.'''

'''6. Review question: the cross-elasticity of A with respect to B is positive, and C with respect to D is negative. What is the relationship (complement or substitute?) of goods A and B with each other, and C and D with each other? Explain.'''

'''6. Review question: the cross-elasticity of A with respect to B is positive, and C with respect to D is negative. What is the relationship (complement or substitute?) of goods A and B with each other, and C and D with each other? Explain.'''

'''7. List the four factors of production and give a very brief explanation of each.'''

'''7. List the four factors of production and give a very brief explanation of each.'''